Driveline "bind", or drag?

I pulled the driveshaft out, and it spins freely in the trans. The diffy seems to be the problem, but the problem went away once I loostened the lug nuts. It seems the brake drum is hitting the outer edge of the brake shoes once the wheel is tightened down. I'm using stamped steel wheels 15X8 with tapered seat lugs and Moser axles. I suppose I could grind the edge of the shoes off, but I never heard of this happening before.
Anyone else run into this before??

Thanks,
George